All articles by Maria McCormick

COMMENT: Breathing new life into fixed life investments

When a fixed life investment trust nears the date on which it is obliged to repay capital to shareholders, typically by way of compulsory winding up provisions, its directors thoughts turn to the options available for its future. Despite its apparent finality, the end of a fixed life need not mean the end of a successful, popular portfolio; with sufficient shareholder support, a successor vehicle can be created from the ashes of the old company. Alternatively, the time-consuming and costly nature of such arrangements has led some companies to seek out new ways to entirely avoid winding up, allowing investors to stay on board if they wish, while providing fair value for those looking for an exit.